Mississippi Individual Income Tax Electronic Filing Handbook
84) A tax credit has a full dollar effect in lowering taxes. TRUE Bloom's: Knowledge Difficulty: Medium Learning Objective: 2 Topic: Income taxes 15. (p. 84) A tax credit reduces the taxable income on which the tax liability is computed. FALSE. The definition is for a tax deduction. A tax credit reduces the amount of taxes owed dollar for dollar. ................
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